Even though H&S bottom are known, as “reliable chart patterns that sport a low failure rate and good average rise. Performance improves if the pattern appears within a third of the yearly high as opposed to near the yearly low,” I have to disagree. I have noticed lately, that most of the times a potential Head-and-shoulders bottom is formed, it gets faded. Below are some of the examples of such cases:
My conclusion is, that it might be safe to play the bounce from the right shoulder to the neckline, after that I would be extra cautious.
